The management of a company should comprise mostly people with direct business experience, whereas the stock market and the BSE have mostly people who have never led a private business as decision makers, says Siminel Andrei, the president of the American investment fund New Century Holdings. Mr. Siminel gave us an interview wherein he presented his opinions on the current situation of the stock market, as well as the evolution of the business of NCH.
Reporter: What is your opinion on the evolution of the BSE under the current management?
Siminel Andrei: The management of a company should consist mostly of people with direct business experience, whereas the stock market and the Stock Exchange have mostly people who never ran a private business as decision makers. Therefore, the approach is very correct from a legal/institutional point of view, but with a very low business effectiveness.
The previous board of directors, which consisted mostly of a heavy business background, took the BSE public, slightly cut expenses, has physically consolidated the market entities, to ease communication, has created the ATS, has listed tens of international companies, has supported the development of derivatives, had the luck of listing the Proprietatea Fund and came into competition with the Sibiu Exchange, thus avoiding the "Sima event".
Reporter: What measures should the management of the BSE take to develop the stock market? How about brokers?
Siminel Andrei: It should attract a large number of individuals whose only investment are now bank deposits or real estate. Since the banking system is in trouble, stock investments are beginning to look like an alternative, which the BSE should capitalize on in 2013. Promoting investments in high-ranking international companies, could bring an increased rate of confidence and profitability.
Reporte